The stock broking business in India has changed a lot. Earlier, the word sub broker was widely used, but after SEBI’s 2018 circular, fresh sub-broker registration as a separate SEBI intermediary was discontinued. Today, the common practical route is the Authorised Person model, where a person or firm works under a registered stock broker and gets exchange approval through that broker.
Still, in the market, people use different names: sub broker, authorised person, remisier, business partner, franchise partner and master franchise. These models look similar from outside, but the investment, responsibility, income and risk are very different.
Quick Comparison
| Model | Best For | Investment Level | Work Responsibility | Income Potential | Risk Level |
| Sub Broker / Authorised Person | Serious local brokerage business | Medium | Client onboarding, support, service, relationship | Good | Medium |
| Remisier | Beginners, part-time network-based earners | Low | Mainly client referral and basic coordination | Limited to moderate | Low |
| Master Franchise | Experienced business owners | High | Managing territory, branches, sub-partners and large client base | High | High |
What Is a Sub Broker or Authorised Person?
A sub broker, in today’s practical sense, usually means an Authorised Person. NSE defines an Authorised Person as an individual, partnership firm, LLP or body corporate appointed by a stock broker to provide access to the stock exchange trading platform as an agent of that stock broker.
This model is suitable for someone who wants to build a proper financial services business. The authorised person brings clients, helps them open accounts, explains platform usage, supports trading-related service issues and earns a share of brokerage generated through those clients.
The important point is that the authorised person does not become an independent stock broker. The trading account, settlement, risk system and exchange-level compliance remain under the main stock broker.
What Is a Remisier?
A remisier is usually a lighter partner model. In many broking businesses, a remisier mainly refers clients to the broker and earns commission or referral-based income from those clients. It is less infrastructure-heavy than the authorised person model.
This model is useful for people who have a good network but do not want to open an office, hire staff or manage regular client service. Some brokers describe the remisier route as easier to enter than a full authorised person or franchise model.
A remisier may be a finance enthusiast, insurance agent, mutual fund distributor, CA office associate, retired professional, trader, teacher, business connector or local influencer who knows people interested in stock market investing.
But the earning potential is usually lower than a full sub broker model because the remisier has fewer responsibilities and less control over client servicing.
What Is a Master Franchise?
A master franchise is a bigger and more business-heavy model. In this setup, the partner may get a larger territory, city, district or region to develop business for the stock broker. The master franchise may also appoint or manage smaller business partners, authorised persons or referral associates, depending on the broker’s structure.
This model is not meant for beginners. It needs capital, office setup, team management, local brand building and strong market experience. Some brokerage partner models describe master franchise as one of the major business-partner categories alongside authorised person and remisier models.
A master franchise can earn more because the business scale is bigger. But expenses are also higher. Office rent, staff salary, training, marketing, compliance coordination and partner management can reduce net profit if the business does not grow fast.
Revenue Sharing Difference
In the sub broker or authorised person model, income usually comes from brokerage sharing. If clients trade through the broker’s platform, the authorised person receives a percentage of the brokerage. Some brokers publicly mention sharing ranges around 50% to 70%, depending on the model and business volume. For example, Sharekhan mentions 60–70% brokerage sharing for franchise partners, while broker partner pages often promote revenue sharing as a major attraction.
In the remisier model, income may be lower but simpler. The person may earn referral commission, account-opening incentive or a smaller share of revenue from referred clients. Exact terms depend on the broker’s agreement.
In the master franchise model, revenue potential can be higher because the partner may earn from a larger territory, more clients and sometimes from sub-partner networks. But there is no universal fixed percentage in the market. Every broker has its own terms.
Responsibility Difference
The authorised person model needs regular client handling. You may have to support clients with account opening, app usage, reports, margins, pledging, order issues and broker coordination. It is a relationship-based business.
The remisier model is lighter. Your main strength is your network. You refer clients and help with initial connection. After that, the broker’s team may handle deeper servicing.
The master franchise model is almost like running a local brokerage business under a bigger brand. You may need to manage staff, branch operations, partner recruitment, local events, client acquisition and business targets.
Compliance Difference
This part is very important. An Authorised Person works under the broker’s supervision and cannot behave like an independent broker. NSE says an authorised person receives remuneration from the stock broker and should not charge clients directly.
Also, none of these models should be used for illegal advisory, guaranteed return promises or collecting client funds in personal accounts. If a person wants to give personalised investment advice, that falls under a separate regulated framework. For a clean business, the partner must stay within the broker’s approved process.
Which Model Is Best for Beginners?
For beginners, the remisier model is the safest starting point. It requires lower investment, less infrastructure and less operational burden. It is good for testing whether your network can actually convert into trading and investment clients.
However, if you already have strong local trust, basic market knowledge and the ability to serve clients regularly, the authorised person model is better. It gives more business identity, better earning scope and stronger long-term growth.
The master franchise model should be chosen only by experienced people who already understand broking, team handling, client acquisition and local financial markets.
Which Model Gives the Best Income?
The master franchise has the highest income ceiling, but it also has the highest cost and pressure. The authorised person model offers the best balance of income, control and investment. The remisier model gives the lowest pressure, but the income may also remain limited unless the person has a very strong network.
So the best model is not the one with the highest commission. The best model is the one that matches your capital, experience, client network and time commitment.
Final Decision
Choose remisier if you want to start small, work part-time or earn from referrals.
Choose sub broker / authorised person if you want to build a serious local financial services business with moderate investment and steady client servicing.
Choose master franchise if you have capital, experience, office infrastructure and the ability to manage people and territory-level growth.
For most serious beginners in India, the authorised person model is the most practical choice. It is neither too small like a basic referral model nor too heavy like a master franchise. It gives enough earning potential, business identity and long-term growth opportunity, provided the partner follows compliance and builds trust patiently.
